State’s electric co-ops are ready for data centers
Ohio's electric cooperatives, through Buckeye Power Inc., have developed a new process to ensure that data centers locating in their territories bear the full costs of their significant electricity demand and necessary infrastructure. This initiative aims to protect existing cooperative members from additional expenses while supporting economic growth.
Ohio's electric distribution cooperatives are proactively addressing the increasing electricity demands of data centers, with more than half of the state's 200+ data centers located near Columbus and two-thirds of new facilities planned for rural areas. Buckeye Power Inc., the generation and transmission cooperative owned by Ohio's distribution cooperatives, has developed a specific process for energy-intensive data centers.
This new policy categorizes data centers separately and directly assigns infrastructure and power costs to these facilities, ensuring that the expenses for new generation plants, transmission lines, and substations are not borne by existing cooperative members. Craig Grooms, president and CEO of Ohio’s Electric Cooperatives and Buckeye Power, stated that this approach protects members from higher costs and insulates them from energy market volatility as large users connect to the grid. Ohio’s Electric Cooperatives serves over 400,000 homes and businesses across 77 counties.